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DAWN WIRE SERVICE
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Week Ending : 11 September 1999 Issue : 05/37
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Contents | National News | Business & Economy | Editorials & Features | Sports
The DAWN Wire Service (DWS) is a free weekly news-service from
Pakistan's largest English language newspaper, the daily DAWN. DWS
offers news, analysis and features of particular interest to the
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Extracts, not exceeding 50 lines, can be used provided that this
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(c) Pakistan Herald Publications (Pvt.) Ltd., Pakistan - 1999
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CONTENTS
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NATIONAL NEWS
+ Decision on CTBT linked to removal of sanctions: FM
+ New Delhi�s N-doctrine threatens global peace
+ Sartaj to take up Indian nuke-plan issue at UN
+ India not willing to receive troops: FO
+ Pakistan accepts proposal for LoC monitoring: FM
+ Nawaz to decide about New York visit: FO
+ Grand alliance in offing
+ Opposition parties form alliance
+ PPP welcomes formation of joint opposition
+ 25 held in raid on Muttahida head office
+ Permission denied: Opposition vows to defy ban on rally
+ ANP parts ways with PONAM
+ Azhar denies working for interim set-up
+ Fazl asks govt to expel US commandos
+ Govt�s days are numbered: Qazi
+ Pakistan fails to report Y2K air-readiness to ICAO
+ Senate's session requisitioned
+ Balochistan PA Ex-minister moves motion against his removal
+ Justice Irshad to be sworn in as acting CJ
+ Tax collectors pocket 7pc of GDP, says Imran
+ Detention a folly, says Fazl after release
+ Mujahideen to open more Kargil-like fronts: Qayyum
+ Imran Farooq in London: seeks asylum
+ MQM slams extra judicial killings
+ Benazir claims credit for Agosta sub
+ Khar says only Banazir can expel him from PPP
+ PAT to oppose polls before accountability
+ Bureaucratic reshuffle in NWFP
+ Banks to issue application forms for Haj from today
+ 21 injured in blasts outside madressah
+ Strike a vote of no-trust against govt, says Benazir
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BUSINESS & ECONOMY
+ Trade gap swells by 96.3 per cent
+ Stocks weigh down by massive selling in Hub-Power
+ IMF wants firm commitment
+ 10pc IT imposed on National Saving Scheme earnings
+ Double-digit inflation feared in 1999-2000
+ Foreign firm for deletion of safeguards
+ Bids for six hydel power projects being invited
+ MoF asked to allocate Rs10bn for housing
+ Bankers assure funds for housing
+ Registration condition for collecting agent goes
+ GST will not be taken back, says CBR chief
+ Tax relief for small traders, GST stays
+ BEL takeover exposes SBP monitoring ability
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EDITORIALS & FEATURES
+ Karachi: earthquake scene-2 Ardeshir Cowasjee
+ Out of breath already Ayaz Amir
+ Inflationary bite of IMF fang S Hasan Asad
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SPORTS
+ Shamsul Islam shocks Ryding in World squash
+ PCB forms inquiry body to probe into Wasim case
+ Aamir Sohail recalled for Toronto series
+ New captain vows to do his best
+ Saeed Anwar a doubtful candidate for Canada
+ Pakistan face setback in Senior Men�s Volleyball
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NATIONAL NEWS
990909
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Decision on CTBT linked to removal of sanctions: FM
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ISLAMABAD, Sept 8: Foreign Minister Sartaj Aziz said Pakistan was
mulling over its final decision on the Comprehensive Test Ban
Treaty because US Congressional action on the removal of sanctions
against Islamabad was still pending.
Pakistan is "making an assessment what the US Congress is going to
decide," Mr. Aziz told reporters.-APP
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990908
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New Delhi�s N-doctrine threatens global peace
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By Hasan Akhtar
ISLAMABAD, Sept 7: Foreign Secretary Shamshad Ahmad urged the
international community to "fully comprehend" the near and long-
term strategic implications of India�s proposed nuclear doctrine.
He said India�s nuclear ambitions are aimed at creating a nuclear
triad - employing up to 400 nuclear warheads on land, sea and in
air - at a cost estimated by independent experts as anywhere
between 20 billion dollars and hundreds of billions of dollars.
The foreign secretary rejected the assertion that such a formidable
nuclear arsenal justified the Indian claim of building only "a
minimum nuclear deterrence", and declared that coupled with its
ever-burgeoning conventional military forces, New Delhi aimed at
building "an offensive and not a defensive military capability".
He recalled that Indian Foreign Minister Jaswant Singh had himself
asserted that a credible minimum deterrence was "a dynamic concept
and not fixed in time and space."
Apparently sounding alarm bells just about two weeks before the
opening of the UN General Assembly session which is to focus on the
nuclear issue, including the Comprehensive Test Ban Treaty (CTBT).
Mr Ahmad, in response to a post-talk question, said that the Kargil
crisis and the subsequent announcement of the Indian draft nuclear
doctrine, presented "an entirely changed environment which would
have a direct bearing on Pakistan�s earlier decision to de-link its
position on the CTBT from India�s.
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990908
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Sartaj to take up Indian nuke-plan issue at UN
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By M. Ziauddin
ISLAMABAD, Sept 7: Foreign Minister Sartaj Aziz is leaving for New
York on Sept 19, to address the UN General Assembly where he is
expected to focus on India�s draft nuclear doctrine and its
implications for the region and the world.
Prime Minister Nawaz Sharif who was earlier scheduled to take the
trip for the purpose on 17th, has reportedly decided to stay home
in view of the growing street agitation against the CTBT and the
Washington accord.
Official sources have, however, refused to confirm or deny the
reports of the PM�s decision not to go to New York as scheduled.
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990909
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India not willing to receive troops: FO
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Bureau Report
ISLAMABAD, Sept 8: Pakistan said that India was showing reluctance
to receive its two soldiers, captured by the Pakistan army
recently, to cover up its attacks on Pakistan�s posts on the Line
of Control.
The Indian government is showing no sign of willingness to take
back two of its soldiers which were captured by the Pakistan army
during an Indian attack on a Pakistani post in Shyok-Turtok sector
across the LoC in Kashmir on 30th August, 1999, a foreign office
press release said. "This obviously is an attempt to cover up
attacks by the Indian army on Pakistani posts," the FO said, adding
"by itself causing delay in receiving its soldiers, New Delhi hoped
to mount a propaganda against Pakistan."
On Sept 3, Pakistan had announced its decision to release the
soldiers through the International Committee of Red Cross (ICRC).
The Indian media reports suggested that New Delhi was also
reluctant to receive the soldiers through the ICRC. On the other
hand, Pakistan insisted that the ICRC must be involved in this
process to avoid India�s malicious and propagandistic charges of
maltreatment of its soldiers, the FO said.
Pakistan had earlier returned bodies of eight Indian soldiers
killed in the Kargil sector, directly to the Indian authorities as
a gesture of goodwill. The Indians, however, had leveled
allegations of mutilation of the bodies, which were subsequently
not substantiated by the postmortem reports. The Indian media, too,
had exposed the blatant Indian government lie.
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990910
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Pakistan accepts proposal for LoC monitoring: FM
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Bureau Report
ISLAMABAD, Sept 9: Pakistan expressed its willingness to accept
Britain�s proposals to strengthen the UNMOGIP observers along the
Line of Control to monitor LoC violations and infiltrations and the
stationing of independent observers in the occupied Kashmir for
greater transparency in human rights matters.
Foreign Minister Sartaj Aziz conveyed this willingness of Pakistan
while talking to a British parliamentary delegation on a fact-
finding mission to AJK which met him at the foreign ministry here.
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990910
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Nawaz to decide about New York visit: FO
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By Hasan Akhtar
ISLAMABAD, Sept 9: The Foreign Office has made "appropriate" and
"necessary preparations" for the prime minister�s address to the UN
General Assembly on Sept 22, but a "final decision" about his visit
to New York is still awaited, FO spokesman Tariq Altaf said.
Questioned repeatedly about Mian Nawaz Sharif�s visit, Mr Altaf
said at his weekly news briefing that it was for the Prime Minister
to decide whether or not to undertake the visit. He, however, said
that it should cause no problems if the Prime Minister delayed his
decision for awhile.
The spokesman evaded direct answers to most of the reporters
seeking to know what was delaying an official announcement in this
regard. The decision might be known any moment, he said.
Mr. Altaf disclosed that it would be an "official" and not the
Prime Minister who would sign the Comprehensive Test Ban Treaty, in
case Islamabad decided to do so. He did not elaborate who that
official might be. He was pressed by newsmen to react to a
suggestion that it was the dilemma over the signing of the CTBT
which was possibly delaying the prime minister�s decision about the
visit.
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990907
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Grand alliance in offing
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By Mahmood Zaman
LAHORE, Sept 6: Political developments have fast moved towards a
'grand' alliance and formal announcement of major parties joining
hands for a joint struggle to oust the PML.
To begin with the alliance will have in its folds the 14-party
Pakistan Awami Ittehad of which the People's Party is the largest
organization, the Awami National Party, the Muttahida Qaumi
Movement, the Pakistan Awami Tehrik of Allama Tahirul Qadri and the
Pakistan Tehrik-i-Insaf headed by cricketer-turned-politician Imran
Khan. Talks with other political parties like are also said to have
been progressing and leaders here hope "a positive outcome".
The alliance has determined seeking the dismissal of the Nawaz
Sharif government as its "top priority" and sources close to it say
that this is the avowed objective. However, the alliance is said to
have worked out a future agenda which has "a genuine" provincial
autonomy and devolution of power on top.
The PAI leadership has not invited the Jamaat-i-Islami and the
Jamiat Ulema-i-Islam of Maulana Fazlur Rehman to join the alliance
for different reasons.
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990908
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Opposition parties form alliance
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By Mahmood Zaman
LAHORE, Sept 7: Major opposition parties of the country have
formally grouped together with the avowed objective of launching a
joint political campaign for achieving a one-point programme to
remove the Nawaz Sharif government. This involves dissolution of
the National Assembly and fresh elections.
Day-to-day activities of the joint opposition will be manned by a
five-member council comprising heads of the PAI and other political
parties who say they have "not entered into a formal alliance but
have joined hands for political cooperation to mobilize a mass
movement against the rulers who have endangered the security of the
country".
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990909
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PPP welcomes formation of joint opposition
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Staff Correspondent
ISLAMABAD, Sept 8: The Pakistan People�s Party has welcomed the
formation of the joint opposition and considers it a vindication of
the position taken by Ms Benazir Bhutto and the party for the last
two and a half year that Nawaz Sharif and the Federation cannot co-
exist.
The Pakistan People�s Party is also confident that the joint
opposition will be able to rid the country of this regime in the
near future. Senator Raza Rabbani said that the PPP had since the
inception of the regime, maintained that its policies were
detrimental to the interest of the smaller federating units and as
a consequence a threat to the federation of Pakistan.
Mr. Rabbani said that the PPP had continuously maintained that the
policies of loot, plunder, rescheduling of bank loans, non recovery
of outstanding taxes from the vested interests had led to a stage
where the finance bill of 1999-2000 passed by National Assembly had
become redundant.
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990911
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25 held in raid on Muttahida head office
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Staff Reporter
KARACHI, Sept 10: At least 25 people were arrested in a police raid
on the Muttahida Qaumi Movement�s headquarters "90" and other
offices at Azizabad.
According to Senator Aftab Sheikh, the policemen who reached the
place in at least nine mobiles thoroughly searched the offices and
took away with them handbills, posters, placards, flags and banners
the party had prepared for the opposition�s rally scheduled to be
held today.
He said the police arrested a number of people and took away fax
and printing machines, besides causing damage to the property.
Those picked up included employees of the head office and the KKF.
"I do not remember that all of those picked up were MQM men. Some
of them might be of other parties from the alliance," said the
senator. Condemning the police action, he said that the raid had
been conducted to create panic and harassment in a bid to prevent
people from attending the rally. He said the police were headed by
SHO Ghazanfar Kazmi and the DSP of Nazimabad, Chaudhry Mohammad
Aslam.
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990911
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Permission denied: Opposition vows to defy ban on rally
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Staff Reporter
KARACHI, Sept 10: The 19-party combined opposition has decided to
defy government restrictions and hold rally on Saturday.
In the final stage of its anti-Nawaz campaign the opposition would
march on Islamabad to throw out the regime, the opposition leaders
announced.
Talking to newsmen in the parking lot of a multinational fast food
chain, the opposition leaders declared that the Saturday�s public
meeting would be a "catalyst" in its bid to dislodge the "corrupt
and incompetent Nawaz regime."
"Come what may, we will hold the rally at the scheduled place and
if the administration created obstructions and denied the
opposition of its basic democratic right of expressing dissent in a
peaceful manner, all responsibilities for the consequences will
rest on the administration," they said.
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990910
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ANP parts ways with PONAM
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By Saleem Shahid
QUETTA, Sept 9: The Awami National Party formally parted ways with
the Pakistan Oppressed Nations Movement (PONAM) here. This was
formally disclosed by Dr Inayatullah Khan, Secretary-General of the
Awami National.
He said that the PONAM Convener, Senator Ajmal Khan Khattak, had a
formal meeting with the other components of PONAM informing them
that the ANP could not continue its association with other PONAM
parties for "basic differences on political and constitutional
issues."
Dr Inayatullah explained his party�s position saying that ANP
believed in politics of Federation while the PONAM components were
insisting on confederation. He said that ANP wanted further
improvement in the existing constitutional arrangements granting
more and more autonomy to the federating units while the PONAM
parties were basically opposed to federal parliamentary system and
they were demanding confederal powers which was against the ANP
principles.
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990911
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Azhar denies working for interim set-up
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Staff Reporter
LAHORE, Sept 10: Estranged PML MNA Mian Azhar says he is not
working for an interim set-up but is trying to rectify the party
situation.
Talking to reporters and various delegations which called on him,
he said he wanted that the party manifesto should be implemented in
letter and spirit. "Don�t push me to the opposition camp".
The former governor assailed the performance of the government,
saying the Quaid-i-Azam had won independence but the government had
again made the nation a slave of foreign countries and
institutions.
He said it was strange that the government held talks with the
United States and India but was reluctant to consult opposition
parties. He underlined the need for national consultation for
better decision-making process. Answering a question, Mian Azhar
said so far the Sharifs had made no effort for conciliation with
him. However, he reiterated that there was no chance of a patch-up.
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990909
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Fazl asks govt to expel US commandos
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Staff Correspondent
DERA ISMAIL KHAN, Sept 8: Jamiat Ulema-i-Islam chief Maulana Fazlur
Rehman has warned the governments of the US and Pakistan to
withdraw American commandos from Peshawar and tribal areas or "face
the consequences".
Addressing a press conference at his residence, the maulana claimed
that the government was providing all the assistance to the
commandos to hunt Osama bin Laden and added that the commandos were
using Pakistan�s land for their evil designs against Taliban and
bin Laden.
The JUI chief advised the government to ensure the evacuation of
the commandos before the tribal youths take the matter in their own
hands and deal with the commandos according to their own customs.
He further warned that if the matter was not dealt with accordingly
the two governments would be held responsible for any "untoward
situation".
The maulana said people would never allow anyone to use Pakistan
lands against Afghanistan. He said that if the US forces attacked
Afghanistan, then no American in Pakistan would be safe and added
that by sending commandos in
tribal areas and Afghanistan, the US government itself was putting
the lives of those Americans at stake.
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990908
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Govt�s days are numbered: Qazi
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Bureau Report
PESHAWAR, Sept 7: Jamaat-i-Islami chief Qazi Hussain Ahmed claimed
that the recent rallies led by him in Karachi, Lahore, Peshawar and
Rawalpindi were indicators of public mood and enough to believe
that the days of Nawaz Sharif government are numbered.
Speaking at a news conference, he said we invite all sane members
of other parties to join us. He claimed, "we are the ones who are
struggling to bring a true Islamic revolution by way of eliminating
all sorts of party, sectarianism, ethnic, linguistic and regional
prejudices and turn the nation into one family".
Referring to recent strike by the businessmen, the JI chief said
the people would willingly pay their taxes if they were ensured
that their money would not be plundered and would be spent on
welfare of the people.
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990911
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Pakistan fails to report Y2K air-readiness to ICAO
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By Omar R Quraishi
LAHORE, Sept 10: Pakistan has failed to tell the International
Civil Aviation Organization whether its air traffic control system
will be Y2K-compliant by Dec 31, 1999, when the so-called
�millennium bug� is expected to hit computers all over the world.
The UN-based group that sets international aviation standards and
guidelines had asked all its 185 member countries to report by July
1, 1999, whether their air traffic and control systems would be
able to deal with the Y2K problem. A Civil Aviation Authority
official, when asked about this, said that the authority would
�soon� send a communication to the ICAO.
"In line with a programme outlined by the federal government all
important agencies and organizations will have to be Y2K-compliant.
The CAA is part of this scheme and we plan to send a response to
the ICAO request soon," he said. However, the official did admit
that the deadline had indeed passed.
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990905
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Senate's session requisitioned
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Staff Correspondent
ISLAMABAD, Sept 4: Twenty-six senators belonging to combined
opposition parties requisitioned the Senate session to discuss four
point agenda topped by its major charge that the government was
using state authority to deprive the people of their right to
dissent.
The six parties which had submitted the requisition include
senators from PPP,ANP, MQM, BNP, BNM and PKMAP. The opposition
senators have sought to discuss the following issues:-
1. To discuss the repressive, un-democratic and anti-people policy
of the government with particular reference to the use of State
authority to deprive the people of their right to dissent.
2. Foreign policy with reference to Afghanistan.
3. Evaluation and valuation of gas royalty to Balochistan.
4. Violation of provincial autonomy by the federal government.
Under the rules, the chairman Senate is bound to convene Senate
session by Sept 17.
The opposition's latest requisitioned session was prorogued on Sept
3 after having remained in session only for three days.
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990908
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Balochistan PA Ex-minister moves motion against his removal
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Staff Correspondent
QUETTA, Sept 7: Malik Sarwar Khan Kakar, a former provincial
minister for Revenue and Zakat, has moved a privilege motion in the
Balochistan Assembly against his removal as minister from the
provincial Cabinet.
Speaker Mir Abdul Jabbar who was presiding over the session allowed
the former minister to move the motion saying that it would be
discussed on Wednesday next as after tabling it the motion has
become property of the House.
Malik Sarwar Khan Kakar pleaded in his privilege motion that he was
sacked from the Cabinet without issuing show cause notice and
completing other formalities, which are necessary before taking
such action against any minister. He said that without completing
these formalities his removal as provincial minister was a breach
of his privilege.
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990907
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Justice Irshad to be sworn in as acting CJ
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Staff Reporter
LAHORE, Sept 6: Justice Irshad Hassan Khan, the senior-most judge
of the Supreme Court, will be the acting chief justice of Pakistan
during the absence abroad of Chief Justice Saeeduzzaman Siddiqui,
who is attending the eighth conference of Asian and Pacific CJs in
Seoul.
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990907
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Tax collectors pocket 7pc of GDP, says Imran
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Staff Reporter
LAHORE, Sept 6: Tehrik-i-Insaaf President Imran Khan has claimed
that seven percent of the country's GDP is 'grabbed' by tax
collectors.
Quoting former caretaker finance minister Shahid Javed Burki, he
said in 1996 total taxation was 14 percent of the GDP which, with
the additional taxation during the past three years and enlargement
of taxation base, must have increased to 18 percent. "Of this seven
percent goes into the pockets of the tax collectors and the
remaining 11 per cent to the national exchequer."
According to him, if so much of the assessed taxes are taken away
by the tax collectors, then people are justified in protesting
against the GST and other levies.
Imran Khan said his party, if voted to power, would frame a law
against conflict of interests to ensure that the ruling classes did
not lay down economic policies geared to benefit them.
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990907
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Detention a folly, says Fazl after release
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Staff Correspondent
DERA ISMAIL KHAN, Sept 6: The chief of the Jamiat Ulema-i-Islam,
Maulana Fazlur Rehman, was released after three days in detention.
He was detained for trying to address a rally in support of Osama
bin Laden in a tribal area where political gatherings are barred.
The release came a day after the JUI threatened countrywide
demonstrations. The divisional commissioner of Dera Ismail Khan met
the JUI chief in Chashma Rest House and told him that the
government had withdrawn the detention orders. Later, he was
brought in a big procession to Dera Ismail Khan.
Talking to reporters, the JUI chief attacked the government and the
United States, which wants the Taliban to expel Bin Laden from
Afghanistan.
The government has made Pakistan subservient to US interests and
its wrong economic policies have put the nation at the mercy of the
International Monetary Fund and other lending agencies, he said.
Maulana Fazl said the Sept 4 nationwide strike by traders against
the imposition of the GST demonstrated people's anger at the
economic mismanagement. He accused the US of meddling in Pakistan
and Afghanistan. He said that his detention and barring his entry
in Waziristan agencies was a "foolish decision". He claimed that
rulers were afraid of the JUI's anti-US drive and his detention was
aimed at foiling the campaign.
He threatened that if Fazlur Rehman's entry in Waziristan was
banned, helicopter or aircraft carrying prime minister or president
would never be allowed to land in tribal areas.
He claimed that rulers had signed a pact to provide all assistance
to US against Bin Laden and Taliban government to shut the chapter
of an Islamic government in Afghanistan. How could one expect the
Pakistan nation would present bouquets in reply to US missiles
fired at Pakistan and Afghanistan.
The JUI chief was of the view that solution to all the problems was
lying in the change of system. He said rulers and opposition were
two faces of the same coin as both were loyal to the US and added
that removal of rulers was the cry of the day.
The JUI has held a series of rallies to condemn the US hunt for Bin
Laden who has been accused by Washington of masterminding the East
African embassy bombings in August 1998.
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990907
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Mujahideen to open more Kargil-like fronts: Qayyum
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SIALKOT, Sept 6: Former prime minister of Azad Kashmir and
President of the Muslim Conference Sardar Abdul Qayyum Khan said
India would have to quit Kashmir as it could not keep it subjugated
by force for long.
Kargil was the first step towards liberation of Kashmir from the
Indian control. Now the Mujahideen will open Kargil-like fronts
wherever they like, Mr Khan said while talking to NNI. India would
have to withdraw from the occupied Valley, he added.
Mr Khan said the prudence and courage with which the Pakistan
government had highlighted the Kashmir issue throughout the world
was praiseworthy. "The Washington accord was no treason or
betrayal. It was in the interest of the Kashmiris and Pakistanis,
and we fully endorse it," he added.
He urged the self-styled jihad organizations not to waste money on
rallies in Pakistan and donate it to the Kashmiris. "If they are
sincere to the Kashmir cause, they should spend the same amount on
welfare of the Kashmiris."
He called upon the United Nations to pressurize India to stop
committing atrocities in the Valley and hold a plebiscite, as
pledged in its resolutions.-NNI
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990910
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Imran Farooq in London: seeks asylum
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By Nasir Malick
LONDON, Sept 9: Muttahida Qaumi Movement Secretary General Dr Imran
Farooq surfaced in London after remaining in hiding for more than
seven years in Pakistan and has sought political asylum.
"I arrived in London yesterday (Wednesday) evening and have sought
political asylum in the United Kingdom," he said. Sporting a beard,
the MQM secretary general who had been declared a terrorist and an
absconder by the Sindh government, appeared fresh and in good
health as he sat next to MQM chief Altaf Hussain who kissed him
before introducing him to the reporters.
The Sindh government had initially announced head-money of
Rs700,000 for the "capture of Dr Imran, dead or alive". On Jan 2,
1995 it raised the head money to Rs3 million through an official
notification.
The MQM Secretary General said he made several attempts in the past
to leave the country but did not succeed. He refused to divulge,
however, details of how he reached London but expressed his
gratitude to all those in Karachi who provided him refuge in their
homes without fear of state persecution.
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990908
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MQM slams extra judicial killings
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By Our Reporter
KARACHI, Sept 7: The Muttahida Qaumi Movement has called for a
complete shutdown in Sindh to protest against extra judicial
killings and police action against small traders and businessmen.
The MQM parliamentary party leader Dr Farooq Sattar said the
Pakistan Awami Ittehad, Pakistan Peoples Party, Awami National
Party, Pakistan Awami Tehrik, Pakistan Tehrik-i-Insaf had supported
the province-wide strike against the mounting police excesses.
He declared that a consensus was emerging among the opposition
parties that during their anti-government campaign if an activist
or supporter of any of the component parties was extra judicially
killed anywhere in the country, the opposition would respond by
resorting to nationwide strike.
Castigating the "extra judicial killings of two more MQM activists,
Dr Sattar said in no civilized society innocent citizens were
killed in such a manner by the police and security agencies.
Their killing brought the figure of extra judicial killing to 26
since the imposition of governor�s rule in Sindh.
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990908
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Benazir claims credit for Agosta sub
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Bureau Report
ISLAMABAD, Sept 7: Opposition leader Benazir Bhutto has welcomed
the induction of French-built Agosta submarine in Pakistan Navy and
said that it was the PPP government which negotiated and concluded
an agreement with France for strengthening the navy�s capabilities.
In a statement the opposition leader said the Nawaz government was
now describing the commissioning of Khalid as a "landmark for
Pakistan Navy" but the same government on assuming office had
politicized the deal to tarnish the image of the opposition leader.
The former Prime Minister recalled that a few months ago the Indian
naval chief had also publicly acknowledged that Agosta had given an
edge to Pakistan Navy. That admission by the Indian naval chief
should have served to open the eyes of those who were opposing her
government�s decision to buy the latest submarines for the Navy,
she said. If even our adversaries admit the superiority of Agostas
the decision to buy these for Pakistan must have been in our
highest national interest, she added.
The deal was transparent and insured transfer of technology to
Pakistan to overhaul, maintain and fabricate essential components
locally, she said. But Nawaz Sharif unfortunately criticized the
deal even at the cost of the national defence and security for
cheap political propaganda, she said. Similarly, Ms Bhutto said the
PPP government also wanted to equip the air force with the latest
Mirages to maintain its technological edge but Nawaz Sharif
politicized it too and deprived the PAF of the much-needed
replenishment of its depleted capability.
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990911
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Khar says only Banazir can expel him from PPP
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Staff Correspondent
MULTAN, Sept 10: Former Punjab governor Malik Ghulam Mustafa Khar
has said that he is not answerable to any PPP leader except Ms
Benazir Bhutto.
Mr Khar said that he would not reply to the show-cause issued to
him by the Punjab PPP president. "Only Ms Bhutto can expel me from
the party." He said that some leaders who were against his
rejoining the party had joined hands against him when he made
public the names of 40 corrupt and dishonest PPP leaders.
Mr Khar claimed that he was in touch with Ms Benazir Bhutto who
would summon him soon to discuss the party�s future political
strategy.
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990909
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PAT to oppose polls before accountability
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Staff Reporter
LAHORE, Sept 8: Claiming that the PML government would be out of
power before the beginning of November, Pakistan Awami Tehrik
chairman Dr Tahirul Qadri declared that his party would resist
fresh elections if held without an across-the-board accountability
of all corrupt people.
"We�ll make such elections impossible to hold. We�ll not hesitate
even from going to a war to avert elections without
accountability," he said at a news conference at his Model Town
residence. He said it would not make any difference if two to three
years were consumed for accountability process.
"Prime Minister Nawaz Sharif is bound to quit. It�s a matter of
days or weeks. He will have to go. Nobody can keep him in power any
more," claimed the PAT chief.
He said if Mr. Nawaz Sharif stepped down as a result of the public
pressure, President Rafiq Tarar would automatically start behaving
like the head of state and take decisions in the interest of the
nation. He said he would not like a single party to form the
interim government. The caretaker government should be of a
national complexion, Dr Qadri added.
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990909
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Bureaucratic reshuffle in NWFP
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Bureau Report
PESHAWAR, Sept 8: In a late night move the NWFP government under a
major bureaucratic reshuffle effected postings and transfers of 22
high ranking officials including secretaries, commissioners and
deputy commissioners.
Officials of the concerned section of the provincial Services and
General Administration department were called in from their houses
late in the evening on Wednesday for preparing and issuing the
notification.
As per the notification secretary forest Ahmed Nawaz Shinwari has
been made an official on special duty (OSD) without bringing in any
other official in his place.
Mr Shinwari is likely to be surrendered to the federal government.
Col (retd) Alamzab Khan, an OSD, was made commissioner Malakand
division, whereas Mohammed Farid Khan who was holding the office of
secretary local government and rural development was transferred
and posted as commissioner Mardan division.
Akhtar Munir Marwat, MD Provincial Urban Development Board was
transferred and posted as commissioner Kohat. Whereas secretary PE
& D, Iftikhar Ali Shah was made secretary local government and
rural development. Commissioner Malakand division Baaz Mohammed was
transferred and made an OSD bringing in his place Col (retd)
Alamazab Khan.
Commissioner Kohat division Ishtiaq Ahmed Khan was transferred and
made MD Provincial Urban Development Board. Mrs. Ali Begum,
secretary population welfare was transferred and posted against
office of secretary PE&D.
Arbab Wazir Ullah Khan was transferred from the post of
commissioner Mardan. His new posting is Director STI. Whereas
Commissioner D.I.Khan Mazhar Ali Shah was transferred and posted as
secretary population welfare. Mohammed Asif Khan, DG Special
Development Unit was transferred and posted as commissioner
D.I.Khan.
Mohammed Umer Afridi was transferred from the office of DG
population welfare and posted as additional secretary education.
Noor Ali Khan, DC Buner district, was transferred and posted DC
Kohistan. Mohammed Humayun was transferred from the office of
political agent Malakand and posted as additional secretary PE&D
department. Shuakat Ali Mohmand was transferred from the office of
additional secretary education and made DG population welfare. Syed
Badshah Bukhari was transferred from the post of deputy secretary
information department and posted as political agent Malakand
agency.
Jamil Ahmed was transferred from the office of deputy commissioner
Kohistan and got new posting of an OSD. Tashfin Khan was
transferred from the office of DC lower Dir and posted as deputy
secretary finance. Badshah Gul Wazir was transferred from the post
of deputy director PSA and posted as DC lower Dir. Zubair Shah was
transferred from the office of director land management NHA and
made DC Lakki in place of Haji Qaim Khan who has been posted as
deputy director PSA whereas Ghulam Farooq was transferred from the
post of additional commissioner Kohat and posted as DC Buner.
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990907
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Banks to issue application forms for Haj from today
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ISLAMABAD, Sept 6: The banks across the country would start issuing
prescribed forms for Haj-2000 from Tuesday (Sept 7) initiating the
process for performance of Hajj by 95,000 intending pilgrims.
The banks would continue receiving Haj applications till Sept 30
under Regular Scheme while Oct 6 is the last date to submit
applications under Sponsorship Scheme.
Separate forms would be available, free of charge, for both the
schemes from country-wide branches of Habib Bank, United Bank,
National Bank, Muslim Commercial Bank and Allied Bank for the
pilgrims intending to fly from Peshawar, Islamabad, Lahore,
Karachi, Quetta, Multan, Sukkur and Faisalabad.
A religious ministry official on Tuesday advised the intending
pilgrims to obtain the new form, which has been simplified for
their convenience. Applications on forms obtained last year would
not be admissible.
Those desirous of not availing the official accommodation are
directed to specifically mention in the form. Otherwise they would
be charged and the amount would not be refunded whether they avail
the facility or not.-APP
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990907
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21 injured in blasts outside madressah
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By Sarfaraz Ahmed
KARACHI, Sept 6: At least 21 people, majority of them students,
received injuries when two bombs exploded outside a madressah in
Gulshan-i-Iqbal.
Except for four who were admitted to hospitals, all others received
minor injuries, according to police and a neighbourhood private
hospital, which claimed it, received 20 to 25 people with injuries
caused by blasts. Later, 10 of the injured were shifted to Civil
and Abassi Shaheed hospitals.
The sound of the blast was so deafening that it shattered the
window panes of not only the madressah building, but also of a
number of houses of the neighbourhood.
The bombs went off in the backside of Madrasa-e-Jamia Ashraf in the
block-II of Gulshan Iqbal at around 3pm. Each contained 400 grams
of explosive and was fitted with a timing device of one to 15
minutes, bomb disposal expert Mr Moinuddin said.
One went off in a drain close to the school and the other four
minutes later on Toyota Hilux (EX-3602). The vehicle was set on
fire and 21 people, who also included pedestrians, were injured,
according to hospital and madressah sources.
Police described the bombings as an "act of terrorism" without
blaming any group. They announced the setting up of a team headed
by a superintendent of police to investigate the matter.
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990905
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Strike a vote of no-trust against govt, says Benazir
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ISLAMABAD, Sept 4: The Leader of the Opposition, Benazir Bhutto,
congratulated the people on their show of unity in condemning the
government and demanding its resignation through a complete
shutter-down strike.
"The complete shutter-down strike today was a proof that the
government has lost its political and moral legitimacy and must
immediately resign paving way for fresh elections under a neutral
set up," Ms Bhutto said in a statement.
Congratulating the PPP workers and all democratic forces that made
the strike an unprecedented success, she said the real power was in
the hands of the people. Benazir said that it was not the destiny
of the people to live in fear and terror, with shoot-on-sight
orders, wondering whether their jobs or their money in banks is
safe.-NNI
===================================================================
BUSINESS & ECONOMY
990911
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Trade gap swells by 96.3 per cent
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Staff Correspondent
ISLAMABAD, Sept 10: The trade gap during July-August 1999 period
has almost doubled at 369 million dollars against 188 million
dollars recorded in the same period last year.
In percentage terms, the trade gap in the first two months of the
current financial year has expanded by a record 96.3 per cent with
imports at 1.59 billion dollars outstripping the export earnings of
1.22 billion dollars.
In the same period last year, exports had earned as much as 1.21
billion dollars and imports had recorded an outflow of 1.40 billion
dollars.
Exports in August 1999 at 633 million dollars increased by 1.4 per
cent against exports earning of 624 million dollars in August 1998.
On the other hand imports in August 1999 at 800 million dollars
were higher by 12.6 per cent over 711 million dollars of imports
recorded in August 1998.
Exports earnings in August 1999 were, however, 6.4 per cent more
than 595 million dollars recorded in July 1999. Imports in the same
period remained stagnant as against an import bill of 800 million
dollars in August 1999, the July bill amounted to 797 million
dollars.
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990911
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Stocks weigh down by massive selling in Hub-Power
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Staff Reporter
KARACHI, Sept 10: The KSE 100-share index showed highly volatile
movements amid conflicting rumours and after early rise of 11
points fell by five points at 1,156.19 as compared to 1,161.19 a
day earlier.
Shell Pakistan and Bank of Punjab, which rose by Rs1.95 and Rs2.00
were leading among the gainers followed by IGI, Babri Cotton, Aruj
Garments, Crescent Jute, PSO, General Tyre and Pakistan Gum
Chemical, which also posted gains ranging from one rupee to Rs1.25.
Losers were led by Mehmood Textiles, Packages, Lever Brothers and
Siemens Pakistan, which suffered fall ranging from Rs3.95 to
Rs10.00. Ashfaq Textiles, Pakistan Tobacco, Balochistan Wheels,
Shafi Chemical were among the other prominent losers, falling by
one rupee to Rs1.75.
Trading volume rose to 160m shares from the previous 142m shares
but losers held a modest a lead over the gainers at 66 to 51, with
56 shares holding on to the last levels, out of the 173 actives.
Bulk of the trading again remained confined to Hub-Power and PTCL,
which together accounted for 120m shares, out of the total volume
of 160m shares.
The most active list was again topped by Hub-Power, off 80 paisa at
Rs17.90 on 71m shares, followed by PTCL, up five paisa at Rs19.85
on 50m shares, PSO, higher Rs1.05 at Rs.24.60 on 27m shares and ICI
Pakistan, lower 15 paisa at Rs9.05 on 2m shares.
Other actively traded shares were led by Dewan Salman, up 40 paisa
on 2m shares, Dhan Fibre, unchanged on 1.556m shares, FFC-Jordan
Fertiliser, easy five paisa on 0.873m shares, Sui Northern, up 20
paisa on 0.652m shares, Tri-Pack films, higher 25 paisa on 0.522m
shares and Askari Bank, lower 25 paisa on 0.494m shares.
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990909
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IMF wants firm commitment
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By Shaheen Sehbai
WASHINGTON, Sept 8: The IMF is waiting for a firm public commitment
from the top leadership of the Nawaz government to "impose and
implement" the GST, otherwise the Pakistan programme will be off,
IMF insiders.
We need a firm political commitment and the will to back up what
they sign. Even if they sign the Letter of Intent (LOI) and then
dilly dally in enforcing the GST, it would not do, the official
warned.
The situation about the LOI is that the IMF is waiting for Finance
Minister Ishaq Dar to sign it, but not in a way that betrays lack
of political will to implement the programme.
The moment the quarterly targets of the GST are not met, the
programme will be off as this is the bottom-line. What they sign
will have to be delivered. If countries like Burkina Fasu can
implement GST, why can�t Pakistan," the official, who sounded very
bitter, complained.
Most of the officials privately agree that the problem in
implementation of GST was not the traders resistance but the lack
of moral authority of the political leadership to impose taxes on
the people when they themselves use every trick in the book not to
pay their own taxes. The example of prime minister�s own personal
income tax is quoted repeatedly to hammer this point.
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990909
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10pc IT imposed on National Saving Scheme earnings
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By Ikram Hoti
ISLAMABAD, Sept 8: The federal government has imposed a 10 percent
income tax on the earnings from all National Saving Schemes. This
tax was not part of the Finance Act, 1999.
The Central Board of Revenue officials confirmed to Dawn that this
was a new tax imposed in the post-budget adjustments by the federal
government.
The CBR officials added that previously only the Regular Income
Certificates of the National Savings were taxed under the Income
Tax Schedule. The CBR officials did not say what amount of
additional revenues were estimated to be generated from levy of
this tax which would be deducted �as if at source� by the branches
of the National Savings Centers.
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990909
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Double-digit inflation feared in 1999-2000
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By Haris Anwar
KARACHI, Sept 6: The inflation rate, which remained subdued during
last fiscal, is expected to hit the double-digit figure in 1999-
2000.
Leading economists believe that in the absence of factors, which
kept CPI inflation at about six percent last year, the
possibilities of containing this year's inflation at the same rate
are very slim. Last year, the deflationary trend abroad and
recessionary conditions in the local economy kept prices of general
consumption goods depressed.
Economists base their forecast of higher inflation on the rapidly
rising POL prices, government plan to bring the overall subsidies
on food and agricultural inputs form Rs 9 billion to Rs 2 billion,
extension of GST to the services and trade sectors and the rupee
instability in market-based exchange rate system. These measures
are recommended by the International Monetary Fund (IMF) as a
precondition to make available its funding to the cash-strapped
government.
Pakistan, however, is on the course of gradually implementing these
measures. The General Sales Tax has been imposed on the
electricity, gas and petroleum products in the first phase. Subsidy
on the electricity has been cut to 15 percent from 30 percent,
while the elimination of the remaining 15 percent and reduction in
the wheat subsidy have yet to take place.
With the emergence of inflationary trends internationally in oil
prices, it should not be surprising if next year inflation is
closer to the double digit figure, said Dr. Sajjad Akhtar, an
economist at Social Policy and Development Centre (SPDC), a private
research think-tank.
He said the government's tax measures with simultaneous increase in
the prices of energy products would eventually be reflected in
rising prices.
According to an understanding reached with the IMF, the development
surcharge, a tax on oil products, will be converted into fixed
specific tax and any increase in the import prices will be
transferred into higher import prices to protect the projected
revenue from this tax.
If such an agreement has been reached then we have the prospect of
rapidly rising POL prices, which will literally fuel inflationary
pressure in the economy, another leading economist said.
Based on over 20 percent rise on average level of 1998-99
international oil prices and seven percent depreciation in the
exchange rate, economists are projecting Rs 13 billion shortfall in
the development surcharge.
Food and energy group has extensive weightage in Pakistan inflation
index. These two components account for over 60 percent of the
general Wholesale Price Index (WPI).
Economists say high and rising inflation poses a serious threat to
macroeconomic stability. Apart from hurting the poor and fixed
income groups, a high inflation rate erodes the external
competitiveness by appreciating the real exchange rate, acting as a
drag on exports.
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990907
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Foreign firm for deletion of safeguards
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By Rauf Klasra
ISLAMABAD, Sept 6: A US-based agro bio-technological multinational
firm, Monsanto has asked Pakistan to delete a clause of the
proposed Intellectual Property and Breeders Rights (IPBR) Act
offering safeguards against negative impacts of transgenic seed
varieties.
Monsanto is known for genetically engineered farm varieties of
various crops and promises to make huge investment in farm sector.
Sources disclosed that the issue came up for discussions with
concerned official of the ministry of food, agriculture and
livestock (MINFAL) at a meeting with the representatives of the
firm on Aug 31. However, both the parties could not reach a
consensus. The issue may be raised again in the context of any move
of investment by the multinational. The IPBR Act draft is under the
finalization process and will shortly be placed before the Cabinet
for its approval.
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990908
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Bids for six hydel power projects being invited
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By Haris Anwar
KARACHI, Sept 7: The governments of NWFP and Azad Kashmir are
calling competitive bids for six hydro power projects on Build
Operate Own and Transfer (BOOT) basis immediately.
The feasibility of these projects has been completed with the
assistance of Private Power Infrastructure Board (PPIB) and GTZ, a
German technical agency.
According to initial estimates, about two billion dollar investment
will be required to install a total 1355 mw hydro power capacity
plant. The projects include: Khan Khwar (72mw); Golen Gol (106mw);
Daral Khwar (35mw); Summar Gah 928mw); Neelam-Jhelum (963mw) and
Allai Khwar (130-150mw).
These projects are being marketed collectively by the PPIB of
ministry of water and power, Wapda and provincial governments.
"This time bids will be evaluated on the basis of levelized tariff,
which means Letter of Support to be issued to the bidder who offers
the lowest tariff," N.A Zuberi, Vice President, PPIB informed the
investors.
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990905
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MoF asked to allocate Rs10bn for housing
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By Ihtasham ul Haque
ISLAMABAD, Sept 4: Prime Minister Nawaz Sharif has asked the
Governor State Bank to direct commercial banks to advance housing
loans by earmarking a 'substantial percentage of their loan
portfolio, like they do for other industrial and commercial
projects'.
Official sources said the ministry of finance has also been
directed by the Prime Minister to make available to the Prime
Minister Housing Authority (PMHA) Rs 10.0bn in the Annual
Development Programme (ADP) of '99-2000. An amount of Rs100m from
this amount is expected to be released by the MoF immediately.
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990908
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Bankers assure funds for housing
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By Ihtashamul Haque
ISLAMABAD, Sept 7: Presidents of UBL, ABL and representatives of
other local and foreign banks met Senator Saif-ur Rehman and
assured him to provide all necessary financial support for
constructing half a million houses and apartments at a cost of
Rs400 billion.
President of United Bank Limited (UBL) Zubair Soomro and President
of Allied Bank of Pakistan (ABL) Rashid Chaudhry held three-hour
long meeting with Chairman Prime Minister Hosing Authority (PMHA)
Senator Saif ur Rehman Khan. Senior bankers of Habib Bank Limited
(HBL), Muslim Commercial Bank (MCB), Citibank and other banks were
also present during the meeting.
Mr.Rashid Chaudhry president of ABL denied that banks were facing
any pressure to lend money to the housing project. It is very sad
that newspapers were publishing absolutely incorrect stories that
there was certain pressure on banks by the Ehtesab Bureau to
allocate funds for the housing project", he said.
The president of the ABL said that the housing project was very
much financially viable for which it will be fully supported by the
local and the foreign banks.
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990908
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Registration condition for collecting agent goes
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By Ikram Hoti
ISLAMABAD, Sept 7: Chairman CBR, Mian Iqbal Farid said the
condition that the Withholding Tax collecting agents should get
themselves registered, has been removed.
Talking to reporters after a meeting with the business leaders, he
said CBR has decided to take four major steps to remove budget
anomalies following demands put forth by FPCCI and other trade
bodies.
A permanent committee has been set up to monitor reassessment of
goods stored at the bonded warehouses. Five-stage audit of the GST-
assessees has been done away with, and only one departmental audit
would be carried out, annually, apart from the intermittent audits
conducted on suspicion of evasion.
The Import Trade Price System would be gradually removed in
assessing import duty and the WTO-sponsored evaluation system
launched from Oct 1, �99.
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990908
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GST will not be taken back, says CBR chief
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Dawn Report
ISLAMABAD, Sept 7: There is no question of withdrawing the general
sales tax and it will be recovered at all costs, says Central Board
of Revenue Chairman Mian Iqbal Farid.
"There is no truth in the reports that the government has gone soft
on the question of GST", Mr Farid told Dawn. He said the traders
had been told that the GST would not be withdrawn come what may.
However, the CBR chief pointed out that the government was ready to
remove the confusion and apprehension of the traders about the GST,
which was in fact, value-added tax.
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990910
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Tax relief for small traders, GST stays
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By Ihtashamul Haque
ISLAMABAD, Sept 9: The government has rejected the traders� demand
to withdraw general sales tax or at least cut in the GST rate from
15 to 5pc but agreed to reduce the turnover tax from 3pc to 0.75pc
for small retailers.
"The GST regime is very much in place and there is no question of
withdrawing it", Finance Minister Ishaq Dar categorically stated.
He said that the 3pc turnover tax would be replaced by 0.75pc
development tax.
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990905
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BEL takeover exposes SBP monitoring ability
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By Sabihuddin Ghausi
KARACHI, Sept 4: All claims of technological upgradation,
improvement in on-site and off-site inspections and setting up of
"early warning desks" with the help of World Bank funded
consultants and advisors in the last three years fell flat, when
the Governor of State Bank of Pakistan came down heavily on another
bank, this time the Bankers Equity Limited (BEL) on Wednesday.
Reports suggest that the BEL has a deposit base of Rs 5.2 billion
with an advances portfolio of Rs 12 billion. It faces a loss of Rs
one billion in 1999. The option now for the SBP is to inject fund
as it did in case of United Bank-Rs 21 billion-or liquidate the
institution.
The Board of Directors and the senior executives of the BEL were
removed on charges of corruption, embezzlement of funds, mis-
reporting of accounts and a host of other irregularities. These
included retaining about Rs 800 million funds received from the
clients in respect of locally made machinery (LMM) instead of
depositing it with the State Bank and allocation of Rs 1.2 billion
loan to Kashmir Sugar mills.
Who are the sponsors of the Kashmir Sugar mills? When this loan was
sanctioned and disbursed? Why no action was taken to stop its
disbursement when it was against the advice of the central bank?
The SBP Governor did not bother to inform the public of the answers
of these questions.
It goes to the credit of the present SBP Governor, who since late
July 1993, when he took over the present assignment, had taken
extreme actions of administrative takeover against three banks so
far. These are Mehran Bank, the United Bank and now the BEL. The
case of Capital Bank should also be included in this list of
'credits' because the State Bank shares some responsibility in its
sanctioning and in its shares subscription by the public.
The building up of 11 billion dollars foreign currency deposits,
its squandering by the governments in power and then its ultimate
freezing on May 28, 1998 is also one of the feathers that the
governor will carry with him when he retires next February. One can
only hope and pray that the list of such 'credits' do not get
enlarged in the next six months.
The BEL is one of the 'newest' financial institutions set up in
1980 by the government. It was set up to promote Islamic
instruments, specially equity finance and to provide capital to the
private industry by underwriting equity issues and arranging
consortia financing from the nationalized commercial banks.
Led by D.M. Qureshi, who is now serving in Saudi Arabia in a key
position in the Islamic Development Bank, the BEL team did well in
setting up of a number of industrial units.
The BEL was handed over to the Long Term Venture (LTV) Modarba
group in June 1996 at Rs 18.50 a share when its balance sheet
showed the break up value of share at over Rs 20. How it happened
is a question that State Bank will have to offer answer some day.
Then the BEL's paid-up capital was Rs 655 million and reserves of
Rs 680 million.
On Thursday (Sept 2), the State Bank Governor in his sermon to the
bankers exhorted them to learn to say "NO" and pick up courage to
stand up against all the pressures. There was none on June 12, 1996
to say "NO" when the BEL was sold away at Rs 280 million in the
'privatization bazar'.
The BEL's financial stability in 1996 can be established from the
fact that it was selected as the administrative unit or the apex
institution to disburse a 200 million dollar World Bank loan for
the industrial projects in Pakistan.
The Asian Development Bank was also put in 100 million dollars and
the total disbursement for industrial projects was to be over 1
billion dollars. Mainly because of the high cost of this financing,
when it was calculated at 24.27 for the borrowers (it included 7.7
per cent World Bank commitment charges, 11.6 per cent foreign
exchange cover exchange cost, 2 per cent guarantee cost plus other
charges), the investors stayed away and the World Bank loan
remained unutilized.
In April 1998, the World Bank is reported to have cancelled 150
million dollars of the 200 million dollars amount. It provided 50
million dollars to Pak-Kuwait Investment Company. But the PKIC also
could not find investors and eventually the World Bank has
cancelled 38 million dollars from this loan amount and provided 12
million dollars as technical assistance to the State Bank of
Pakistan and the Privatization Commission.
Actually, the World Bank's total package was of 216 million
dollars. It included bulk component of 200 million dollars of loan
for industrial projects and 16 million dollars technical assistance
offered under the Financial Sector Deepening and Intermediation
Project (FSDIC).
Under the 16 million dollar technical assistance, the State Bank
was given 5.4 million dollars, Privatization Commission 1.4 million
dollars, Corporate Law Authority 2.37 million dollars, Controller
of Insurance 2.12 million dollars, BEL 1.05 million dollars and 1.7
million dollars were not allocated but retained in the package.
Inquiries made with the relevant quarters reveal that bulk of the
technical assistance amount-4 million dollars-has been invested in
the State Bank during the last two and half a years. The State Bank
appointed a well-known foreign firm Arthur Anderson against the
World Bank assistance fund.
The State Bank claimed to have strengthened its on-site and off
site inspection of the financial sector. The organizational
structure of the State Bank's administrative divisions were re-
designed and new divisions and sections were set up.
In 1997, the State Bank claimed to have set up "early warning
desks" that would scrutinize the reports and statements of the
financial institutions and would ring alarm bell whenever it was
felt. But then in case of BEL it was too late as confessed by the
State Bank Governor himself, who has outlined a number of steps to
ensure that there was no further leakage and hemorrhage of the
leftover funds.
Now the size of the World Bank technical assistance funds has
increased to 28 million dollars from the original 16 million
dollars. The recipients of this technical assistance will now only
be the State Bank and the Privatization Commission as the other
segments of financial sector are being looked after by the Asian
Development Bank.
Financial analysts now foresee the number of the World Bank funded
advisors and consultants in the State Bank of Pakistan and the
Privatization Commission likely to be increased along with
extension in the tenure of those who are already engaged in the
last two years following the enhancement in the technical
assistance programme.
In its previous programme, the World Bank has put the conditions of
privatization of UBL, HBL, State Life Insurance Corporation. For
one reason or the other, the World Bank wants speedy privatization
of these two banks with offering of remaining government
shareholdings in the Muslim Commercial Bank and the Allied Bank.
No funds are being provided by the World Bank, Asian Development
Bank or any agency of the United Nations to help countries like
Pakistan to take stock of the gains or losses sustained in the
privatization programmes. None of the non-governmental
organizations (NGOs) in Pakistan which are funded lavishly by the
foreign agencies are ready to undertake this exercise of the
results of the privatization of MCB, ABL and a number of major
industrial units. How many of these have improved their production
techniques? How much more jobs they have created?. How much revenue
they generate? What is the sum total of gains, if there are any, or
losses sustained because of this?
Answers of these questions are very necessary for countries like
Pakistan before hiring fat salaried consultants and financial
advisors to undertake privatization.
Back to the top
===================================================================
EDITORIALS & FEATURES
990905
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Karachi: earthquake scene-2
-------------------------------------------------------------------
By Ardeshir Cowasjee
IF Nawaz Sharif feels that he can survive and do wrong for ever by
amending the Constitution, changing the laws, subverting the
judiciary, oppressing and taxing the people at will whilst
indiscriminately squandering their money, and by misgoverning with
deliberation, he is surely mistaken.
As far as Karachi is concerned, yesterday's strike was sustained by
the people. The lame-duck crooked opposition leaders, who grab at
any available opportunity to make a nuisance of themselves, did
their utmost to use it to their advantage. It was an effective
strike of stomachs belonging to various denominations, some
deserving some not. When stomachs rebel against authority they do
so irrespective of the consequences that may follow.
Thanks to Nawaz Sharif, the economy of Karachi effectively stopped
generating as of noon on Friday the 3rd and will not gain momentum
until noon on Tuesday the 7th, after the armed forces have
celebrated their victories over the years from 1965 onwards, the
year during which Ayub Khan declared September 6 as 'Defence Day,'
a public holiday, to commemorate his great victory.
Now to the subject matter of this column, an extension of what was
written last week - dangerous buildings.
In Turkey, the earthquake score now stands at some 50,000 dead and
500,000 homeless. The building control authorities of the Turkish
cities, like ours, are corrupt to the core, and have their fair
share of unscrupulous crooked builders and developers. Ishak
Alaton, a 70-year-old Turkish businessman, philanthropist, and
commentator on Turkish norms and practices, has this to say about
the recent catastrophe:
"Our company, Alarko, has constructed hundreds of houses and
factories in that particular area. I am proud to say that in these
constructions that were built in the last four decades, not one
single crack occurred. The simple reason is that we, like all
serious contractors and builders in that area, applied the
prevailing Turkish codes of construction, which allow for an
earthquake that would be 9.2 on the Richter scale. The great loss
of life is the result of unscrupulous small developers and builders
setting up apartments in loose riverbeds and land reclaimed from
the sea without laying the necessary foundations. Unfortunately, no
technical control by the municipalities was applied, due to the
collusion between unscrupulous builders and local municipal
bureaucracies." (Newsweek, September 6)
The people of Karachi may not remember how, to save its own skin in
its own particular convoluted way, the Karachi Building Control
Authority (KBCA), under pressure from concerned citizens (mainly
the NGO SHEHRI which has the good fortune of being guided by the
public-spirited volunteer Engineer Roland de Souza), published a
public warning in Dawn on January 10 1997.
The warning listed 262 buildings. The text read: "The following
buildings which were constructed against the approved building
plans have been sealed by the KBCA and therefore the general public
is informed not to enter into any transactions with the builders."
It informed the people yet again that in terms of the Sindh
Building Control Ordinance 1979 it is mandatory that people occupy
premises only after the builders have been given completion and
occupancy certificates by the KBCA.
Again, under pressure and to cover themselves, another warning was
published by the KBCA on September 1, 1998, listing 26 high-rises
of the 262 buildings, all 26 on the Sharea Faisal: Jason Trade
Towers, Al-Kamran Centre, Fortune Centre, Progressive Square,
Business Avenue, Shaheen Towers, Amber Towers (Block 6), Amber
Castle, Shaheen View, Doctors Plaza, Amber Pride, Marine Faisal,
Hannan Centre, Tax Free Plaza, Anum Classic, Kawish Crown,
Metropolitan Bank, Faisal Towers, Fayyaz Plaza, Amber Towers
(SMCHS), Mehdi Towers, Falaknaz Towers, three unnamed highrises
standing on 15-A, 20-A and 29-A Block 6, and one unnamed high-rise
on 47 Darul Aman.
This time the warning was more specific. People were told that
these buildings "are being constructed in contravention of the
approved building plans . . . additionally the unauthorised
construction is potentially dangerous as [buildings] are being
built without an approved plan, [they] have not been properly
supervised by a KBCA licensed architect/engineer. They are being
constructed in violation of the earthquake resistance design."
Through collusion between the KBCA building controllers, their
lawyers, the builders and their lawyers, and the courts, even after
publication of this notice most of these dangerously constructed
buildings have been completed and a number of them are occupied.
Take the case of Fortune Towers, standing incomplete on the left of
Sharea Faisal going towards the airport. This construction, from
point one, was challenged by the NGO, SHEHRI, so far
unsuccessfully.
On August 8, 1997, the KBCA, duly greased, approved a plan, which
it should not have done, for the construction of ground plus twelve
commercial floors on a residential plot not legally converted. On
December 18 1997, the KBCA, approved a revised building plan
allowing ground plus sixteen floors.
SHEHRI is still fighting. Involved in this collusion, apart from
the KBCA, its men and lawyers, the builders and their lawyers, are
various courts at various stages.
This incomplete structure should cover a built-up area, illegally
allowed by the KBCA, of 113,068 square feet. But what stands today
covers a built-up area of 364,826 square feet, over three times the
area originally approved. Needless to say, the structure does not
meet with earthquake resistance standards.
Next, to Al-Karam Centre on the right of Sharea Faisal going
towards the airport, opposite the Nursery market. The approved plan
allowed for ground plus eight floors.
The builders built ground plus twelve, under cover of stay orders
of sorts obtained from courts. Subsequently the High Court vacated
the stay orders leaving KBCA free to act.
It started demolition proceedings in accordance with the law and
had demolished or rendered uninhabitable the top two floors when
the Secretary of Housing and Town Planning (HTP), Faisal Saud,
instructed the Director-General of the KDA and the Commissioner of
Karachi to stop the demolition work. At noon on May 3, 1999, it was
stopped.
On May 5, 1999, I wrote to Governor Haider: "On May 4, Faisal Saud
was asked at the meeting of the KDA Governing Body why he had
interfered with the due process of law. He advised that he had done
so on your instructions conveyed to him on the telephone by your
Military Secretary. It seems that you have been misinformed and
thus have ordered as you did. It is inconceivable that you could
have stalled the due process of law, allowing time to the builders
to have the building occupied by rented crowds."
Some days later I met the governor but he did not disclose who or
what had got under his skin. The order had been issued by him
whilst he was in Islamabad.
The illegally approved plan of this building permitted the building
of 21,381 square feet. The builder built 86,130 square feet, over
four times as much.
Now, the builders and their organization, the Association of
Builders and Developers (ABAD), feel that whatever the builders
build illegally and not in accordance with the law of the land, and
every other criminal act, should be regularized by the government.
They recently wrote to the editor of this newspaper, copying me:
"The negative attitude of SHEHRI towards regularization of
irregular illegal buildings has made the issue more [complicated].
In every major city of Pakistan, regularization is considered a
compoundable offence, whereas because of bias and blackmailing
attitude of this NGO neither KBCA entertains plans for
completion/regularization nor Government has come up with any final
answer to this apathy."
The committees constituted and notified to oversee the operation of
the KBCA and the KDA Governing Body, on both of which sit
responsible representatives of the people, are to some extent
effective. That is proven by the fact that Secretary, HTP, Faisal
Saud, wants both disbanded and reconstituted with purchasable
individuals and bodies.
The secretary is frustrated, and in his frustration, from January 1
of this year, he has transferred and reposted 43 officers angling
to be posted to positions of their liking. Of the 43, by law the
secretary was empowered to transfer only three, the KDA Governing
Body having the authority to transfer the other 40. But then, it is
said that transferring and reposting is a lucrative business.
To make things worse, Ghous Ali Shah, in his perfect wisdom, has
assigned the portfolio of Housing and Town Planning to Dost
Mohammed Faizi. People well know the propensities of Ghous and of
Faizi, and they will resist.
To live in a dwelling which meets with laid-down standards is their
legitimate due.
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990910
-------------------------------------------------------------------
Out of breath already
-------------------------------------------------------------------
By Ayaz Amir
NAWAZ SHARIF is not the victim of evil circumstances. To think so
would be to flatter him. He is the author of his own misfortunes,
the dangers threatening to overwhelm his government being the
direct outcome of his personal failings.
Which other Prime Minister would have handled Kargil the way he
did? Which other Prime Minister would have first given the okay to
this expedition, without of course realizing what he was getting
into, and then made such a hash of the follow-up retreat? Which
other Prime Minister would have brought so much gratuitous
humiliation to the nation? Which other Prime Minister would have
sent Ghous Ali Shah and, of all policemen, Rana Maqbool to Sindh?
The storm-clouds of agitation gathering on the horizon are merely
catalysts which are stripping the veil from a larger truth: that
the heavy mandate was an aberration and that in trying to tackle
the country's problems this government simply has been out of its
depth. True, if circumstances had been kinder, this process of
exposure might have taken longer. But then the prime minister and
his team should not have tempted fate the way they have done, thus
bringing their hour of reckoning that much closer.
History may have no design or purpose but one factor runs
constantly through it: hubris and arrogance exact their own
retribution and bring about their own fall. Pakistan has known
plenty of arrogant and less than able rulers. But such a marriage
of audacity and incompetence as is now to be seen is virtually
unparalleled. At the same time, for a seemingly strong government
to have its balloon pricked so quickly is also unparalleled.
This has come about even if, and this is a point worth noting, no
full-fledged agitation against the government has yet started.
Whether the people are tired or are not fully fired up is beside
the point. What we are seeing are just the first mutterings of
discontent with the crowds still not pouring into the streets in
any great demonstration of anti-government anger. Even so, the
government is shaken. It has faced just the first few blasts from
an autumn wind and it already looks stricken.
The agitation�s against Ayub Khan and Bhutto were serious affairs.
The first of these lasted four months, that against Bhutto six
months. But even though both were frenzied affairs, those oligarchs
did not look half as shaken when their end came as the keepers of
the heavy mandate are doing in this relatively early season. What
if the going gets tougher? It is going to put a strain on the
equanimity of the Prime Minister and his team. Already they are
saying things they should not. Shahbaz Sharif's description of the
combined opposition as a grouping of "thieves and dacoits" is a
case in point. Was this a considered statement or the telltale sign
of a premature panic?
In his first term as prime minister, Nawaz Sharif once said he was
not afraid of confrontation because he was a product of
confrontation - fateful words which might yet come to haunt him
just as Zulfikar Ali Bhutto's great boast that he was a man of
crisis came to haunt the latter in 1977.
Which are the confrontations Nawaz Sharif has to his credit? Three
of them: against Benazir Bhutto, against Ghulam Ishaq Khan and with
India over Kargil. In the first of these showdowns Nawaz Sharif had
the full backing of the army, the intelligence agencies, the then
president (Ghulam Ishaq Khan) and the Punjabi establishment. If he
came out on top, the honours were widely shared.
In his confrontation against Ghulam Ishaq Khan he had the backing
of the Punjabi establishment, including the Supreme Court under
Nasim Hasan Shah. The first round in that confrontation, which was
confined to the Supreme Court, Nawaz Sharif handily won. But when
the issue was joined by the then army chief, General Waheed, some
of Nawaz Sharif's iron resolve crumbledand he agreed to step down
as prime minister. His only consolation was that in going down he
also took Ishaq with him.
As for Kargil, light lie the ashes of Pakistani pride. To have
created such a mess in the first place. That required genius. Then
to have beaten such a headlong retreat. That too required genius.
How is Nawaz Sharif likely to fare in this the fourth
confrontation, which is staring him in the face? The signs are not
auspicious. He is all on his own, the army and its spymasters,
their support and largesse so crucial to him in the past, are in a
sullen mood, certainly in no mood to bail him out. Not this time.
Kargil and its aftermath have seen to that.
Moreover, the opposition parties have got together sooner than many
pundits would have expected. The PPP, ANP and MQM on one platform
even if for the moment the platform is creaky and ill defined. It
is an alarming development nonetheless. And what of Qazi Hussain
Ahmed? In what threatening tones is he speaking?
If Nawaz Sharif is genuinely bamboozled he is not to blame. Here he
had seemingly taken care of all threats and insured his stay in
power for the foreseeable future: got rid of Leghari and installed
his own man in his place; got rid of a troublesome chief justice
(Becket to his Henry the Second); and had even replaced one army
chief with another. As for Benazir Bhutto and her husband, they had
been virtually drummed out of the political arena. The rest of the
political parties were like chaff before the wind. The empire of
the heavy mandate was thus secured.
And to think that just when the prospect seemed so rosy and
promising, the fates should have caught up and made an omelette of
the heavy mandate.
Pakistani rulers may not be able to look beyond their noses but
even the most inconsequential of them plan their innings on an
eternal scale, thinking they are going to be around forever. They
are lucky if they are in health for two or three years. After that
their energy begins to drain and they become a prey to the
elements, martial law regimes alone proving impervious to this iron
law.
Nawaz Sharif no doubt thought he too was another exception. Nor
could he be blamed for thinking so. Did he not bestride the world
of Pakistani politics like a colossus? Had not rival centres of
authority been either rubbished or cut down to size? All that
remained was just him and his lengthening shadow. He could do as he
pleased. There was no one to question him. He could order whatever
gimmicks caught his fancy and make as many foreign trips as he
wished.
A pity that this gathering crisis has revealed that although to all
outward form he may still look a giant, his feet are of clay. This
then is one confrontation for which the self-proclaimed man of
confrontation seems wholly unprepared. It is shaping up badly for
him, which is probably the reason why everyone in his camp seems to
be out of breath already.
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990906
-------------------------------------------------------------------
Inflationary bite of IMF fang
-------------------------------------------------------------------
By S Hasan Asad
The government appears to have finally decided to impose sales tax
on power, gas and services/professionals sectors. Having postponed
the imposition of this tax for the first quarter of the current
financial year, the federal government has asked the CBR not to
delay it beyond September.
The issue is why was this decision not taken in the federal budget
in June and was postponed till September when it was agreed in the
accord with the IMF that the GST will be formally extended to
services, petroleum products, electricity and agricultural inputs
and cross subsidies on gas and electricity will be withdrawn?
The explanation is that it was considered appropriate to avoid the
bitter pill as long as possible. A glaring example is that of
telephone in which case the excise duty was lowered from 25 per
cent to 15 per cent in the budget, whereas soon after the budget
the tariff was jacked up appreciably raising the charges up to 30
per cent.
The mini-budgets of the magnitude envisaged would spur inflation
with serious impact on exports, domestic demand, income
distribution and social discontent. The finance minister in his
budget speech said that inflation will "go down" to 6 per cent from
6.1 per cent last year. On the basis of the premise of lower
inflation, the government in May reduced the profit rates on
national savings schemes which has further eroded the income of
pensioners, widows and other low income people who invest in these
schemes. The consumer price index, as prepared by the Federal
Bureau of Statistics, is faulty as common man experiences inflation
by a fall in his real income.
According to independent analysts, the current inflation rate is
around 15 per cent annually or more than double the rate assumed by
the government. The mini-budgets, contemplated by the IMF, would
raise the price spiral to 20 per cent or beyond.
Now that the release of the fourth tranche of $280 million out of
$1.56 billion ESAF programme is due, there are indications that the
government may have to impose taxes worth around Rs25 billion to
attain the revenue target of Rs356 billion. After tough
negotiations with Pakistan�s delegation led by Ishaq Dar at
Washington in July, the IMF team is coming to Pakistan this month
to review the fulfillment of different conditionalities which,
besides GST on a wide range of goods and services, would include
agricultural income tax, withdrawal of subsidies on gas and power,
formation of Pakistan Revenue Authority, acceleration in
privatization process, increase in the number of registered
taxpayers to 1.8 million by May 31, 1999, and the IPPs issue.
There are also rumors of devaluation. The other day the prime
minister himself stated that we want to fulfil all conditions and
agreements with the donor agencies. In this connection, he
specifically mentioned the conditionality regarding withdrawal of
subsidy on electricity tariff introduced in September last year.
Yet prime minister�s decision of 50 per cent reduction in the flat
tariff of electricity for tube-wells used in agriculture could not
have come at a worse moment than when discussions where on with the
IMF in Washington. In fact, the release of the tranche probably in
September will be contingent upon the fulfillment of various
conditionalities.
The impact of rising petroleum prices is pervasive and cannot be
ignored as only recently in May their prices have been hiked by 10
per cent following the unification of dual exchange rate. In other
words, in a short period of three months, these prices would shoot
up by hefty 25 per cent.
The government has drawn a phased plan for the withdrawal of gas
subsidies. Recently, the subsidy on gas for some fertilizer units
has been cut in the first phase.
The manufacturing sector is already groaning under the high cost of
power and utility charges which is making our products
uncompetitive overseas and depressing the domestic demand. Further
hike in these charges would aggravate the problem and deepen the
recession. Business community has, therefore, expressed grave
concern over the reported government decision to impose 15 per cent
sales tax on electricity, gas and petroleum products.
It is necessary to take stock of the inflationary momentum and not
remain complacent with the decline in inflation, as revealed by the
official statistics. The contention of Ishaq Dar that the levy of
the GST on utilities will not burden the common man is fallacious.
The Monopoly Control Authority is ineffective in controlling the
prices� spiral. The Consumer Protection Act could be a powerful
tool to help promote healthy marketing culture and thereby assuage
inflationary impact.
The critical questions are: Will the finance minister mull over the
surge in prices following mini-budgets and come out of the shell of
contrived price index of the Federal Bureau of Statistics? Has he
ever pondered over the plight of the hapless common man afflicted
by the price hike of daily consumer goods? Has not the inequality
of income distribution worsened over the recent years following the
liberalization of the economic policy framework? Will not the
rising prices make the task of attainment of export target arduous?
Are sugary budgets of any help to common man? What measures have
been taken by the government to hold the price-line and save the
people from the inflationary bite of the IMF fang?
===================================================================
SPORTS
990911
-------------------------------------------------------------------
Shamsul Islam shocks Ryding in World squash
-------------------------------------------------------------------
CAIRO, Sept 10: Australian Rodney Eyles, champion only two years
ago, was toppled in the opening match of the World Open Squash
Championship.
The 32-year-old was beaten 15-9, 13-15, 15-8, 15-13 by the left-
handed Egyptian teenager, Amr Shabana, ranked 35 in the world.
Amjad Khan, the 13-seeded nephew of former champion Jansher Khan,
of Pakistan, was stretched the full distance and kept on court for
64 minutes by Mohamed Abdul Hafiz, a qualifier from Egypt. Amjad
won 15-5, 11-15, 15-3, 13-15, 15-9.
Amjad�s compatriot Shamsul Islam Khan, ranked 49th in the world,
upset 14th seed Graham Ryding of Canada in a five-game battle,
coming from behind to triumph 12-15, 15-10, 11-15, 15-9, 15-8.
But Pakistani qualifier Mansoor Zaman was not so lucky after
leading Omar El Borolossy by two games to one. The unseeded
Egyptian came out winner 15-7, 12-15, 10-15, 15-13, 15-11.
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990911
-------------------------------------------------------------------
PCB forms inquiry body to probe into Wasim case
-------------------------------------------------------------------
Sports Reporter
ISLAMABAD, Sept 10: A three-member PCB inquiry committee will probe
into the incident involving Test batsman Mohammad Wasim and will
present its report in 24 hours before a final decision is taken in
this regard.
Mr Mujeebur Rehman, the chairman PCB ad hoc committee, while
announcing the formation of three-member committee, stated that the
decision taken by the Pakistan Cricket Board Disciplinary Committee
was an in-built system incorporated to act promptly in case of any
indiscipline by the cricketers.
Mujeeb said that it appears that the charges framed against
Mohammad Wasim were false and there was "set-up" to falsely
implicate the cricketer.
The three-member committee includes Javed Zaman, Col Noushad Ali
and Hafiz Manzoor Hussain, co-opted member of the PCB ad hoc
committee.
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990909
-------------------------------------------------------------------
Aamir Sohail recalled for Toronto series
-------------------------------------------------------------------
Sports Reporter
ISLAMABAD, Sept 8: Pakistan�s belligerent wicket-keeper batsman
Moin Khan was named as captain and Saqlain Mushtaq his deputy in a
15-man national cricket team for the Toronto Mini-Series.
After announcing the team chairman Pakistan Cricket Board (PCB) ad
hoc committee Mujeebur Rehman maintained that merit, performance
and fitness of players have been kept in view in finalizing the
squad.
Following are the 15 players: Moin Khan (captain), Saeed Anwar,
Aamir Sohail, Wajahatullah Wasti, Inzimamul Haq, Yousuf Youhana,
Hassan Reza, Abdul Razzaq, Azhar Mehmood, Shoaib Akhtar, Saqlain
Mushtaq, Waqar Younis, Arshed Khan, Mushtaq Ahmed and Shabbir
Ahmed.
Rashid Latif, Mohammad Wasim and Akhtar Sarfraz are the three
reserves.
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990909
-------------------------------------------------------------------
New captain vows to do his best
-------------------------------------------------------------------
Sports Reporter
KARACHI, Sept 8: Newly appointed Pakistan captain Moin Khan said he
was determined to continue the good job done by his predecessor
Wasim Akram.
"I am a stand-in captain for Wasim Akram. So I am looking forward
to hand over the team back to him in the same way I have got from
him," he said.
This year under Wasim Akram, Pakistan drew the two-Test series
against India, clinched the inaugural Asian Test Championship, and
won the back-to-back triangular contests in India and Sharjah
before reaching the final of the World Cup.
The wicket keeper said the team has blended into a winning
combination "and the credit of it goes only to Wasim Akram. I wish
that he soon takes over the charge and lead Pakistan to more
glories."
Referring to the Toronto series, Moin said the members of the side
were keen to begin the 1999-2000 international season on a winning
note. But he warned that cricket was a game of uncertainties.
"Like any other team, we also hate to lose. But only fools predict
in this sport because the complexion of the game can change in one
over.
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990908
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Saeed Anwar a doubtful candidate for Canada
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Sports Reporter
KARACHI, Sept 7: Swashbuckling opener Saeed Anwar was a doubtful
starter for the Toronto tour despite being picked in a strong 15-
man. The batsman, according to informed sources, is tending his
wife who is said to be seriously ill.
"Saeed has informed the selectors that he is not in a proper frame
of mind. But he has not ruled out his participation as yet. He has
asked for a couple of days to decide," informed sources said.
If Saeed pulls out from the tour, it would turn out to be a
blessing in disguise for Shahid Afridi who has been dropped for his
inconsistent performance in the World Cup.
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990908
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Pakistan face setback in Senior Men�s Volleyball
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Sports Correspondent
LAHORE, Sept 7: Pakistan�s race for any of top three positions in
the Asian Senior Men�s Volleyball Championship at Tehran (Iran) has
been halted, after conceding back to back defeats at the hands of
Australians and Chinese Taipei in the quarter-final league. Now
Pakistan will play for the fifth to eighth position places.
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